The Institute of Chartered Accountants in Ireland (ICAI) has appointed Prof Ian Percy, as a special investigator to carry out inquiries following the findings of the Public Accounts Committee (PAC) on DIRT.

The PAC found auditors to the State's financial institutions had failed to detect the widespread use of bogus accounts to avoid DIRT. This led to the Revenue Commissioners' call for a new State agency to act as a watchdog for the accountancy profession. Prof Percy is a former president of the Institute of Chartered Accountants of Scotland and is currently chairman of the Accounts Commission for Scotland and vice-chairman of the UK auditing practices board.

The ICAI said he will examine the findings of the PAC report and "will inquire into the conduct of members and member firms in carrying out their professional duties. "He will then determine whether any prima facie case of misconduct exists, and if such a case is established the matter will go before the ICAI's disciplinary committee".

His appointment replaces the old system of having a committee investigating issues of public concern.